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Tax Law

Louisiana Enacts Marketplace Facilitator Legislation and Issues Related Guidance

On June 11, Louisiana’s Governor signed SB 138 into law. The law, which takes effect July 1, will mandate sales tax collection and remittance by marketplace facilitators with either $100,000 of in-state sales or 200 in-state transactions. The law (now known as Act 216) excludes from its requirements third-party payment processors, derivatives clearing organizations, advertising services platforms, businesses reselling hotel rooms, certain lodging platforms, and car rental businesses. It also allows certain marketplace sellers with over $1B in annual revenue to contractually agree with marketplace facilitators to retain collections responsibilities. The collected tax must be reported and remitted to a central entity – the Louisiana Sales and Use Tax Commission for Remote Sellers.

In addition, the Louisiana Sales and Use Tax Commission for Remote Sellers approved a draft information bulletin that will provide guidance for marketplace facilitators and sellers under the provisions of Act 216.